A preferential trade area in northeast asia prospects and problems

Title
A preferential trade area in northeast asia prospects and problems
Authors
Jaleel Ahmad
Keywords
logistics, preferential, trade
Issue Date
2005
Publisher
인하대학교 정석물류통상연구원
Series/Report no.
Journal of international logistics and tradevol.3 no.113-26 pp.
Abstract
This article offers an economic analysis of the main policy issues surrounding the
proposed preferential trade area (PTA) between Japan, China, and South Korea.
This initial assesment is done within the normative framework of customs union
theory. Already, intra-regional trade between the three counties constitutes a high
proportion of their total trade and is, in fact, cited as one of the main reasons for
the PTA. As a consequence, trade creation following the PTA may not result in
much new trade. However, it is expected the the PTA would lead to a vigorous
growth of intra-industry trade, particularly in manufactured goods and
components, Possibilities of trade diversion are real, but no insurmountable if the
resultin prefernce structure is designed with a view to minimize disruption of
trade with the rest-of-the-world.This article offers an economic analysis of the main policy issues surrounding the
proposed preferential trade area (PTA) between Japan, China, and South Korea.
This initial assessment is done within the normative framework of customs union
theory. Already, intra-regional trade between the three countries constitutes a high
proportion of their total trade and is, in fact, cited as one of the main reasons for
the PTA. As a consequence, trade creation following the PTA may not result in
much new trade. However, it is expected that the PTA would lead to a vigorous
growth of intra-industry trade, particularly in manufactured goods and
components. Possibilities of trade diversion are real, but not insurmountable if the
resulting preference structure is designed with a view to minimize disruption of
trade with the rest-of-the-world.
URI
http://dspace.inha.ac.kr/handle/10505/676
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연구기관 > 대학부설 연구소 > 정석물류통상연구원 > Journal of international logistics and trade
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